Kelly Services Inc.

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KELYA : NASDAQ : Commercial Services
$29.99 | %
Today's Range: 29.61 - 30.19
Avg. Daily Volume: 177400.0
02/16/18 - 4:00 PM ET

Financial Analysis


KELLY SERVICES INC's gross profit margin for the fourth quarter of its fiscal year 2017 has increased when compared to the same period a year ago. Even though sales increased, the net income has decreased. KELLY SERVICES INC has average liquidity. Currently, the Quick Ratio is 1.43 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 13.78% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q4 FY17 Q4 FY16
Net Sales ($mil)1422.31304.4
EBITDA ($mil)34.627.9
EBIT ($mil)28.422.6
Net Income ($mil)17.719.8


Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)33.329.6
Total Assets ($mil)2376.32028.1
Total Debt ($mil)10.20.0
Equity ($mil)1151.51012.0


Profitability Q4 FY17 Q4 FY16
Gross Profit Margin18.9317.89
EBITDA Margin2.432.13
Operating Margin2.01.73
Sales Turnover2.262.6
Return on Assets3.015.95
Return on Equity6.2111.93
Debt Q4 FY17 Q4 FY16
Current Ratio1.51.58
Debt/Capital0.010.0
Interest Expense0.01.1
Interest Coverage0.020.55


Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)38.438.2
Div / share0.080.08
EPS0.450.51
Book value / share29.9926.49
Institutional Own % n/a n/a
Avg Daily Volume177246.0135858.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 30.62 for the Professional Services industry and a discount compared to the S&P 500 average of 25.51. For additional comparison, its price-to-book ratio of 0.99 indicates a significant discount versus the S&P 500 average of 3.26 and a significant discount versus the industry average of 8.12. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, KELLY SERVICES INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
KELYA 16.43 Peers 30.62   KELYA 16.24 Peers 17.48

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

KELYA is trading at a significant discount to its peers.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

KELYA is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
KELYA 11.01 Peers 19.72   KELYA 0.55 Peers 0.98

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

KELYA is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

KELYA trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
KELYA 0.99 Peers 8.12   KELYA -41.43 Peers 48.17

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

KELYA is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, KELYA is expected to significantly trail its peers on the basis of its earnings growth rate

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
KELYA 0.21 Peers 3.90   KELYA 1.84 Peers 11.27

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

KELYA is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

KELYA significantly trails its peers on the basis of sales growth

 

 

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